CNOOC may takeover Unocal

China's third-biggest oil and gas group CNOOC is considering a bid of more than 13 billion dollars for its US rival Unocal.

The deal would mark the largest and most significant overseas acquisition by a Chinese company.

The Financial Times reports that the state-controlled group is interested in Unocal's Asian assets and has asked bankers to study a takeover of the whole company followed by a subsequent sale of the US assets.

The company is likely interested in Unocal's operations in Indonesia, Thailand, Bangladesh and Burma.

The plan is still at a very early stage, and detailed talks have yet to take place. But the Chinese group is also looking at other overseas targets.

Industry experts expect that buying Unocal would be difficult for CNOOC, which has a market value of about 21.5 billion US dollars and had cash resources of 1.6 billion at the end of 2003.

But it would be able to draw on financial help from its state-owned parent China National Oil Offshore Corporation and on the proceeds of any sale of Unocal's US assets.

Source: CRI News